HC Deb 02 April 1925 vol 182 cc1535-6W

asked the Chancellor of the Exchequer whether he is aware that, as the British Paper Makers' Association have estimated, there will be a surplus production of newsprint amountting to over 1,000 tons per day at the end of this year when the mills in course of erection are completed; and, in view of this fact, will he reconsider the decision to grant a credit of £400,000 to a Canadian company for the manufacture of newsprint?


I am informed that the Advisory Committee appointed to consider applications under the Trade Facilities Acts considered all available information including the estimate put forward by the British Paper Makers' Association before recommending that a guarantee should be given in this case. The answer to the second part of the quesiton is in the negative.

Lieut.-Commander KENWORTHY

asked the Chancellor of the Exchequer whether he is aware that the Wayagamack News Company, Limited, of Three Rivers, Canada, has been granted a credit of £400,000 by the Trade Facilities Advisory Committee, and that this company is the same as the Wayagamack Pulp and Paper Company, Limited, also of Three Rivers, Canada, against whom E. S. and A. Robinson, Limited, of Bristol, were awarded damages for £30,000 odd in May, 1921, by Master Jelf, of the High Court of Justice, King's Bench Division, for breach of contract arising from their failure to deliver paper purchased from them; that when the action commenced they entered appearance, but subsequently refused to recognise the jurisdiction of the Court, and the judgment remains unsatisfied until this day; whether it is the intention of the Govern- meat that companies who do not recognise the jurisdiction of British Courts when proceeded against by British companies should receive credits under the Trade Facilities Act passed by this House; and what action he proposes to take in the matter?


A guarantee covering a loan not exceeding £425,000 has been given to the Wayagamack News Company, the, money to be wholly expended in this country on the purchase of machinery and materials. The Wayagamack Pulp and Paper Company, Ltd., provide a guarantee of the loan of £425,000 to the Wayagamack News Company as a supplemental security beyond the assets of the News Company. I am informed by the Trade Facilities Advisory Committee that they were well aware of the litigation referred to in the second part of the question, that they had carefully considered the whole of the circumstances, including litigation now proceeding in Canada, and that they find no reason for amending their recommendation. In reply to the third part of the question in cases of the kind indicated by the hon. and gallant Member all the circumstances are fully investigated before a guarantee is recommended under the Trade Facilities Act. In this case the investigation was made by a committee of business men, and the result was favourable to the applicant. I do not propose to take any action in the matter.